Federal Budget Supports Automotive Supply Chain Innovation and Improved Productivity

TORONTO, April 21, 2015 /CNW/ - The federal budget announced today includes a number of measures that recognize the need for the auto industry and its suppliers to be competitive and address future challenges through the research and innovation of new technologies, with the associated economic benefits.

The CVMA welcomes today's federal budget announcement of the Automotive Supplier Innovation Program. A program which addresses the critical gap in support for industry based product development that lies between the basic research conducted in universities and fully-commercialized products in the marketplace is a welcomed course of action.

Increasing the pace of innovation throughout the vehicle supply chain is essential as we strive to double the fuel economy of the light duty vehicle fleet by 2025, along with the added demand for enhancements to vehicle safety and connectivity. The regulatory requirements and consumer demand for these new technologies are such that virtually every vehicle component and the manufacturing processes used to make them will need to be re-engineered. "We welcome the opportunity to collaborate in the structuring of this program to ensure it succeeds in developing innovative solutions that will help attract product development activities and provide high technology jobs for Canadians here at home in all segments of the Canadian auto industry and its entire value chain", said Mark Nantais, President.

The announcement of the 10-year longer term extension of the Accelerated Capital Cost Allowance (ACCA) is as an important measure that supports companies in making productivity improvements through investing in new machinery and equipment to enhance their ability to compete in today's global markets. "The ACCA will help Canadian auto manufacturing companies and auto parts suppliers continue to innovate. It is an important factor for success in today's highly competitive global markets, where Canadian auto manufacturing companies and their suppliers must continue to invest in advanced manufacturing to improve productivity by utilizing leading edge technology in both products and processes", said Mark Nantais, President.

Under the joint Canada-U.S. Perimeter Security and Competiveness initiative a good deal of progress has been made aligning regulations between the two countries and ensuring greater efficiencies at our international border crossings. Continuing to implement the Beyond the Border and Regulatory Cooperation Council (RCC) Action Plans with the United States under this initiative is essential to the competitiveness of many economic sectors that are fully integrated on both sides of the border. Environment Canada's Chemical Management Plan and its alignment with that of the U.S. has been identified in the RCC forward action. We hope that the additional funding announced will be used to support the delivery of this key action item, particularly as it relates to automotive products and vehicle manufacturing processes.

About the Canadian Vehicle Manufacturers' Association (CVMA):

The Canadian Vehicle Manufacturers' Association is the industry association that has represented Canada's leading manufacturers of light and heavy duty motor vehicles for more than 85 years. Its membership includes FCA Canada Inc.; Ford Motor Company of Canada, Limited and General Motors of Canada Limited. Collectively its members account for 62% of vehicles produced in Canada, operate 5 vehicle assembly plants as well as a number engine and components plants, and have over 1,300 dealerships. 115,000 jobs are directly tied to vehicle assembly in Canada. Direct and indirect jobs associated with vehicle manufacturing are estimated at over 500,000 across Canada. Please visit www.cvma.ca.


SOURCE Canadian Vehicle Manufacturers' Association (CVMA)

For further information: Mark Nantais, President, Canadian Vehicle Manufacturers' Association, 416.364.9333, 416.560.4005


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